Rand Health Insurance Flashcards

1
Q

Rand Health Experiment

A

Large, social science experiment to study how individuals will use medical care under insurance. Took a large sample of people and followed them throughout several years to see how they are spending on health care.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Main Point of Rand Health Experiment…

A

Wanted to provide some estimates of the effect of insurance on the demand of medical care.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Argument of the Rand Health Experiment…

A

It is hard to rely on observational data because of endogenity problem.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Observational Data

A

Collecting data that already exists. Not always preferred.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Endogenity Problem

A

When data is biased or incorrect.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Rand Health Experiment is Relevant Because of the use of….

A

Random sample; people were randomized to different health insurance plans. Applied to broad range of services.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

3 Main Finding of the Experiment Was….

A
  1. As coinsurance rate increased, use of medical care decreased.
  2. No statistical difference in inpatient expenses by insurance type. Will hit that cap/deductible immediately so insurance covered services.
  3. As copayment decreased, demand for care became more price inelastic (do not have to pay as much as more).
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Health Effects of Experiment and Benefitted the Most…

A
  1. Only identified 3 health effects: blood pressure, myopia, and dental care.
  2. Poorer adults (20% income) that have increased blood pressure, myopia, and dental care have faced improvement under FFS plan.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Health Effects Conclusion…

A

We need to be careful to assigning health insurance in order to restrain costs and maintain health.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly